12 04a COMMERCIAL LEASE AGREEMENT

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

12-04A COMMERCIAL LEASE AGREEMENT

COMMERCIAL LEASE AGREEMENT

THIS COMMERCIAL LEASE AGREEMENT ("Lease") is dated as of [effective date] and is made by and between [landlord name], a[n] [landlord state of formation] [landlord entity type], having an office at [landlord address], as Landlord, and [tenant name], a[n] [tenant state of formation] [tenant entity type], having an office at [tenant address], as Tenant.

1. Definitions: When used in this Lease:

a. "Building" means the building located at [leased premises address].

b. "Date of this Lease" means [effective date].

c. "Landlord" means [landlord name].

d. "Landlord's Address for Notice" means [landlord address].

e. "Monthly Installment" means the monthly payments calculated by dividing the rent by the number of months in the term. Monthly Installments shall be prorated for the month of Lease commencement and termination, as applicable.

f. "Premises" means the real property and all improvements thereon, including the Building, located at [leased premises address], as more particularly described on Schedule A attached hereto.

g. "Rent" means the total aggregate amount due for the entire term to be paid by Tenant to Landlord in monthly installments.

h. "Tenant" means [tenant name].

i. "Tenant's Address for Notice" means [tenant address].

j. "Term" means the period of [number of months] months beginning on [term beginning date] and ending at midnight on [term ending date].

2. Lease of Premises. Landlord leases the Premises to Tenant for the Term and on the conditions provided in this Lease.

3. Payment of Monthly Installments. Tenant agrees to pay to Landlord the Monthly Installments without demand, deduction or offset: (i) in advance on the first day of each month during the Term; and (ii) at Landlord's Address for Notice.

Any amount due from Tenant to Landlord which is not paid when due shall bear interest at the maximum rate permitted by law, not to exceed 17% per annum, from the date such payment is due until paid, except that amounts spent by Landlord on behalf of Tenant shall bear interest at such rate from the date of disbursement by Landlord to compensate Landlord for Tenant's use of Landlord's money. For rent due, but not paid within 10 days from the due date, interest shall be deemed to have accrued from the due date and a one-time late charge equal to the greater of [percentage]% of the rent owed or $[amount] shall be due, which late charge shall not be assessed against the interest that may have accrued. The late charge shall not bear interest. The parties hereby agree that such late charge represents a fair and reasonable estimate of the administrative costs Landlord will incur in processing such late payment and such charge is paid to Landlord as liquidated damages for each delinquent payment.

4. Condition of Premises. [Except as provided in Section [section dealing with exceptions]], Tenant has carefully inspected the Premises and Tenant accepts the Premises in its existing condition on the first day of the Term. Landlord has made no representations, statements or warranties, express or implied, about the condition of the Premises or the suitability of the Premises for any particular purpose.

5. Use. Tenant may use and occupy the Premises for [premises type of use] purposes and directly related ancillary uses and for no other uses. Tenant may not use or occupy the Premises for any illegal or unlawful activity or for any hazardous purpose, except as provided in Section 15.

6. Subletting; Assignment. Tenant will not sublease all or any part of the Premises and/or assign this Lease or any of Tenant's interest in this Lease without first obtaining the prior written consent of Landlord, which consent may be granted or withheld in Landlord's discretion, although, in making its decision, Landlord will review, among other items, the net worth of the proposed sublessee, assignee or successor in interest; its credit history and standing; its business history; and the proposed use of the Premises. No sublease or assignment that is permitted under this Lease shall relieve Tenant of any of its obligations under this Lease.

Notwithstanding the first sentence of this Section (but subject to Tenant's continuing liability), Tenant shall have the right, without the necessity of obtaining the prior written consent of Landlord and provided Tenant submits to Landlord an agreement executed by the proposed transferee assuming Tenant's obligations under this Lease, to:

a. Sublet all or any part of the Premises or assign this Lease to any parent or subsidiary of Tenant which has a net worth equal to or greater than the net worth of Tenant as of the date of this Lease (any such entity, a "Permitted Transferee").

b. Assign this Lease to (i) a corporation, partnership, limited liability company or other entity which succeeds to all or substantially all of the assets, liabilities and business of Tenant and which has a net worth equal to or greater than the net worth of Tenant as of the date of this Lease, (ii) a Permitted Transferee, or (iii) any affiliated corporation, partnership, limited liability company or other entity into which Tenant is merged or consolidated.

c. Assign this Lease (whether directly or by operation of law) to a corporation, partnership, limited liability company or other entity which acquires all of the outstanding capital stock of Tenant and which has a net worth equal to or greater than the net worth of Tenant as of the date of this Lease.

7. Alterations and Improvements. Tenant may make alterations, additions and improvements to the Premises, at Tenant's own cost and expense and in compliance with all laws and regulations; provided, that Tenant first obtains Landlord's written consent, which consent may be withheld or granted in Landlord's sole discretion. In the event Landlord has not granted or withheld its consent within 15 days following written request therefor, Landlord's consent shall be deemed to be withheld. All alterations, additions and improvements will become the property of Landlord upon the expiration or termination of this Lease, unless Landlord requests Tenant to remove such alterations, additions and improvements, in which case Tenant will, at Tenant's expense, undertake and complete such removal and restore the Premises to substantially the same condition that they were in at the commencement of the term, reasonable use and wear excepted. [Notwithstanding the above, Tenant may make additions, replacements or upgrades to existing systems in the Premises which do not exceed $[alterations amount] in any one instance or $[alterations aggregate amount] in the aggregate without first obtaining Landlord's prior written consent; provided, that: (a) any such improvements will not lessen the value of the Premises and (b) Tenant will first obtain approval from all governmental agencies and any Mortgagee (as defined below) that may be required.]

8. Repairs. Tenant, at Tenant's own cost, will keep the Premises, its fixtures and systems, in good order and repair, reasonable use and wear excepted. Tenant will make and pay for all repairs to the Premises, its fixtures and systems, unless such repairs are caused by the negligent or willful misconduct of Landlord occurring on or after the Date of this Lease. All repairs made by Tenant will be at least equal in quality and class to the original work. When used in this Section 8, "repairs" mean all interior and exterior, structural and nonstructural, ordinary and extraordinary, foreseen and unforeseen, repairs, replacements and renewals to the Premises, which may be necessary to keep the Premises, its fixtures and systems, in the condition they were in on the date of this Lease, reasonable use and wear excepted. In the event of an emergency, Landlord may enter the Premises after notifying the Tenant (unless impossible to do so) for the purpose of making any necessary repairs, at Tenant's cost and expense.

9. Liens. Tenant will do nothing to cause any lien or other encumbrance (collectively referred to as a "Lien") to be placed upon the Premises. Tenant will promptly pay all contractors and materialmen which Tenant hires in order to prevent the filing of any Lien against the Premises. Unless Tenant is contesting a Lien in good faith and has provided a bond in form and amount reasonably acceptable to Landlord, if any Lien is filed against the Premises (whether or not the Lien is valid), Tenant will, at Tenant's own cost and expense, cause that Lien to be canceled and discharged of record or bonded within 15 days after written request by Landlord. Tenant shall indemnify and save harmless Landlord from and against all losses, claims and damages, including reasonable attorneys' fees, resulting therefrom.

10. Maintenance. Tenant will maintain the Premises in a clean and sanitary condition. Tenant will not permit any refuse or debris to accumulate on the Premises and will have all of Tenant's waste and trash removed at Tenant's expense. Tenant will remove all ice and snow from the sidewalks and parking lot adjoining the Premises at Tenant's expense. Tenant...